diff --git a/.travis.yml b/.travis.yml
index dc03c584f3..142210d258 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -2,7 +2,7 @@ language: node_js
 node_js:
   - "7"
 script:
-  - npm run lint && npm run test && npm run downloadsolc && npm run make-mock-compiler && npm run build
+  - npm run lint && npm run test && npm run downloadsolc && npm run make-mock-compiler && npm run setupremix && npm run build
   - ./ci/browser_tests.sh
 deploy:
   - provider: script
diff --git a/ci/browser_tests.sh b/ci/browser_tests.sh
index 5b4c27ce40..93da0c55cc 100755
--- a/ci/browser_tests.sh
+++ b/ci/browser_tests.sh
@@ -4,14 +4,7 @@ set -e
 
 setupRemixd () {
   mkdir remixdSharedfolder
-  cd remixdSharedfolder
-  echo "contract test1 { function get () returns (uint) { return 8; }}" > contract1.sol
-  echo "contract test2 { function get () returns (uint) { return 9; }}" > contract2.sol
-  mkdir folder1
-  cd folder1
-  echo "contract test1 { function get () returns (uint) { return 10; }}" > contract1.sol
-  echo "contract test2 { function get () returns (uint) { return 11; }}" > contract2.sol
-  cd ..
+  cd contracts
   echo 'sharing folder: '
   echo $PWD
   node ../node_modules/remixd/src/main.js -s $PWD &
diff --git a/contracts/contract1.sol b/contracts/contract1.sol
new file mode 100644
index 0000000000..4abefc018b
--- /dev/null
+++ b/contracts/contract1.sol
@@ -0,0 +1 @@
+contract test1 { function get () returns (uint) { return 8; }}
\ No newline at end of file
diff --git a/contracts/contract2.sol b/contracts/contract2.sol
new file mode 100644
index 0000000000..96b59660ba
--- /dev/null
+++ b/contracts/contract2.sol
@@ -0,0 +1 @@
+contract test2 { function get () returns (uint) { return 9; }}
\ No newline at end of file
diff --git a/contracts/folder1/contract1.sol b/contracts/folder1/contract1.sol
new file mode 100644
index 0000000000..11122d3008
--- /dev/null
+++ b/contracts/folder1/contract1.sol
@@ -0,0 +1 @@
+contract test1 { function get () returns (uint) { return 10; }}
\ No newline at end of file
diff --git a/contracts/folder1/contract2.sol b/contracts/folder1/contract2.sol
new file mode 100644
index 0000000000..04f9b2eb26
--- /dev/null
+++ b/contracts/folder1/contract2.sol
@@ -0,0 +1 @@
+contract test2 { function get () returns (uint) { return 11; }}
\ No newline at end of file
diff --git a/contracts/folder1/contract_chrome.sol b/contracts/folder1/contract_chrome.sol
new file mode 100644
index 0000000000..04f9b2eb26
--- /dev/null
+++ b/contracts/folder1/contract_chrome.sol
@@ -0,0 +1 @@
+contract test2 { function get () returns (uint) { return 11; }}
\ No newline at end of file
diff --git a/contracts/folder1/contract_firefox.sol b/contracts/folder1/contract_firefox.sol
new file mode 100644
index 0000000000..04f9b2eb26
--- /dev/null
+++ b/contracts/folder1/contract_firefox.sol
@@ -0,0 +1 @@
+contract test2 { function get () returns (uint) { return 11; }}
\ No newline at end of file
diff --git a/package.json b/package.json
index 967adf8eec..42060a51a2 100644
--- a/package.json
+++ b/package.json
@@ -139,7 +139,8 @@
     ]
   },
   "scripts": {
-    "pullremix": "mkdir remix; git clone https://github.com/ethereum/remix; cd ..",
+    "setupremix": "npm run pullremix && npm run linkremixcore && npm run linkremixlib && npm run linkremixsolidity && npm run linkremixdebugger;",
+    "pullremix": "git clone https://github.com/ethereum/remix",
     "linkremixcore": "cd node_modules && rm -rf remix-core && ln -s ../remix/remix-core remix-core && cd ..",
     "linkremixlib": "cd node_modules && rm -rf remix-lib && ln -s ../remix/remix-lib remix-lib && cd ..",
     "linkremixsolidity": "cd node_modules && rm -rf remix-solidity && ln -s ../remix/remix-solidity remix-solidity && cd ..",
diff --git a/src/app.js b/src/app.js
index 9db3e79058..ab8d2f04c3 100644
--- a/src/app.js
+++ b/src/app.js
@@ -497,10 +497,8 @@ Please make a backup of your contracts and start using http://remix.ethereum.org
     switchFile: function (path) {
       fileManager.switchFile(path)
     },
-    event: this.event,
-    currentFile: function () {
-      return config.get('currentFile')
-    },
+    event: fileManager.event,
+    config: config,
     currentContent: function () {
       return editor.get(config.get('currentFile'))
     },
diff --git a/src/app/files/basicReadOnlyExplorer.js b/src/app/files/basicReadOnlyExplorer.js
index fa3006f53a..a9178702ab 100644
--- a/src/app/files/basicReadOnlyExplorer.js
+++ b/src/app/files/basicReadOnlyExplorer.js
@@ -5,7 +5,9 @@ class BasicReadOnlyExplorer {
   constructor (type) {
     this.event = new EventManager()
     this.files = {}
+    this.paths = {}
     this.normalizedNames = {} // contains the raw url associated with the displayed path
+    this.paths[type] = {}
     this.type = type
     this.readonly = true
   }
@@ -36,19 +38,32 @@ class BasicReadOnlyExplorer {
   }
 
   set (path, content, cb) {
-    this.addReadOnly(path, content)
+    var unprefixedPath = this.removePrefix(path)
+    this.addReadOnly(unprefixedPath, content)
     if (cb) cb()
     return true
   }
 
   addReadOnly (path, content, rawPath) {
-    var unprefixedPath = this.removePrefix(path)
     try { // lazy try to format JSON
       content = JSON.stringify(JSON.parse(content), null, '\t')
     } catch (e) {}
-    this.files[this.type + '/' + unprefixedPath] = content
+    // splitting off the path in a tree structure, the json tree is used in `resolveDirectory`
+    var split = path
+    var folder = false
+    while (split.lastIndexOf('/') !== -1) {
+      var subitem = split.substring(split.lastIndexOf('/'))
+      split = split.substring(0, split.lastIndexOf('/'))
+      if (!this.paths[this.type + '/' + split]) {
+        this.paths[this.type + '/' + split] = {}
+      }
+      this.paths[this.type + '/' + split][split + subitem] = { isDirectory: folder }
+      folder = true
+    }
+    this.paths[this.type][split] = { isDirectory: folder }
+    this.files[path] = content
     this.normalizedNames[rawPath] = path
-    this.event.trigger('fileAdded', [this.type + '/' + unprefixedPath, true])
+    this.event.trigger('fileAdded', [path, true])
     return true
   }
 
@@ -68,46 +83,12 @@ class BasicReadOnlyExplorer {
     return this.files
   }
 
-  //
-  // Tree model for files
-  // {
-  //   'a': { }, // empty directory 'a'
-  //   'b': {
-  //     'c': {}, // empty directory 'b/c'
-  //     'd': { '/readonly': true, '/content': 'Hello World' } // files 'b/c/d'
-  //     'e': { '/readonly': false, '/path': 'b/c/d' } // symlink to 'b/c/d'
-  //     'f': { '/readonly': false, '/content': '<executable>', '/mode': 0755 }
-  //   }
-  // }
-  //
-  resolveDirectory (path, callback /* (error, filesList) => { } */) {
+  resolveDirectory (path, callback) {
     var self = this
     if (path[0] === '/') path = path.substring(1)
     if (!path) return callback(null, { [self.type]: { } })
-    var tree = {}
-    // This does not include '.remix.config', because it is filtered
-    // inside list().
-    Object.keys(this.list()).forEach(function (path) {
-      hashmapize(tree, path, {
-        '/readonly': self.isReadOnly(path),
-        '/content': self.get(path)
-      })
-    })
-    return callback(null, tree[path] || {})
-    function hashmapize (obj, path, val) {
-      var nodes = path.split('/')
-      var i = 0
-
-      for (; i < nodes.length - 1; i++) {
-        var node = nodes[i]
-        if (obj[node] === undefined) {
-          obj[node] = {}
-        }
-        obj = obj[node]
-      }
-
-      obj[nodes[i]] = val
-    }
+    // we just return the json tree populated by `addReadOnly`
+    callback(null, this.paths[path])
   }
 
   removePrefix (path) {
diff --git a/src/app/files/browser-files.js b/src/app/files/browser-files.js
index ac0504e4aa..ce645a083c 100644
--- a/src/app/files/browser-files.js
+++ b/src/app/files/browser-files.js
@@ -103,55 +103,29 @@ function Files (storage) {
     return false
   }
 
-  //
-  // Tree model for files
-  // {
-  //   'a': { }, // empty directory 'a'
-  //   'b': {
-  //     'c': {}, // empty directory 'b/c'
-  //     'd': { '/readonly': true, '/content': 'Hello World' } // files 'b/c/d'
-  //     'e': { '/readonly': false, '/path': 'b/c/d' } // symlink to 'b/c/d'
-  //     'f': { '/readonly': false, '/content': '<executable>', '/mode': 0755 }
-  //   }
-  // }
-  //
   this.resolveDirectory = function (path, callback) {
     var self = this
     if (path[0] === '/') path = path.substring(1)
     if (!path) return callback(null, { [self.type]: { } })
+    path = self.removePrefix(path)
     var filesList = {}
     var tree = {}
     // add r/w filesList to the list
     storage.keys().forEach((path) => {
       // NOTE: as a temporary measure do not show the config file
       if (path !== '.remix.config') {
-        filesList[self.type + '/' + path] = false
+        filesList[path] = false
       }
     })
     // add r/o files to the list
     Object.keys(readonly).forEach((path) => {
-      filesList[self.type + '/' + path] = true
+      filesList[path] = true
     })
 
     Object.keys(filesList).forEach(function (path) {
-      hashmapize(tree, path, {
-        '/readonly': self.isReadOnly(path),
-        '/content': self.get(path)
-      })
+      tree[path] = { isDirectory: false }
     })
-    return callback(null, tree[path] || {})
-    function hashmapize (obj, path, val) {
-      var nodes = path.split('/')
-      var i = 0
-      for (; i < nodes.length - 1; i++) {
-        var node = nodes[i]
-        if (obj[node] === undefined) {
-          obj[node] = {}
-        }
-        obj = obj[node]
-      }
-      obj[nodes[i]] = val
-    }
+    return callback(null, tree)
   }
 
   this.removePrefix = function (path) {
diff --git a/src/app/files/file-explorer.js b/src/app/files/file-explorer.js
index 15baaf437d..5c6bb27d07 100755
--- a/src/app/files/file-explorer.js
+++ b/src/app/files/file-explorer.js
@@ -1,4 +1,3 @@
-/* global FileReader */
 var yo = require('yo-yo')
 var csjs = require('csjs-inject')
 var Treeview = require('remix-debugger').ui.TreeView
@@ -55,14 +54,21 @@ module.exports = fileExplorer
 
 function fileExplorer (appAPI, files) {
   var self = this
+  this.events = new EventManager()
+  // file provider backend
   this.files = files
+  // element currently focused on
+  this.focusElement = null
+  // path currently focused on
+  this.focusPath = null
 
+  // warn if file changed outside of Remix
   function remixdDialog () {
     return yo`<div>This file has been changed outside of Remix IDE.</div>`
   }
 
-  this.files.event.register('fileExternallyChanged', (path, content) => {
-    if (appAPI.currentFile() === path && appAPI.currentContent() !== content) {
+  this.files.event.register('fileExternallyChanged', (path, file) => {
+    if (appAPI.config.get('currentFile') === path && appAPI.currentContent() !== file.content) {
       modalDialog(path + ' changed', remixdDialog(),
         {
           label: 'Keep the content displayed in Remix',
@@ -71,15 +77,58 @@ function fileExplorer (appAPI, files) {
         {
           label: 'Replace by the new content',
           fn: () => {
-            appAPI.setText(content)
+            appAPI.setText(file.content)
           }
         }
       )
     }
   })
 
-  var fileEvents = files.event
+  // register to event of the file provider
+  files.event.register('fileRemoved', fileRemoved)
+  files.event.register('fileRenamed', fileRenamed)
+  files.event.register('fileRenamedError', fileRenamedError)
+  files.event.register('fileAdded', fileAdded)
 
+  function fileRenamedError (error) {
+    modalDialogCustom.alert(error)
+  }
+
+  function fileAdded (filepath) {
+    self.ensureRoot(() => {
+      var folderpath = filepath.split('/').slice(0, -1).join('/')
+
+      var currentTree = self.treeView.nodeAt(folderpath)
+      if (currentTree && self.treeView.isExpanded(folderpath)) {
+        self.files.resolveDirectory(folderpath, (error, fileTree) => {
+          if (error) console.error(error)
+          if (!fileTree) return
+          fileTree = normalize(folderpath, fileTree)
+          self.treeView.updateNodeFromJSON(folderpath, fileTree, true)
+          self.focusElement = self.treeView.labelAt(self.focusPath)
+          // TODO: here we update the selected file (it applicable)
+          // cause we are refreshing the interface of the whole directory when there's a new file.
+          if (self.focusElement && !self.focusElement.classList.contains(css.hasFocus)) {
+            self.focusElement.classList.add(css.hasFocus)
+          }
+        })
+      }
+    })
+  }
+
+  function fileRemoved (filepath) {
+    var label = this.treeView.labelAt(filepath)
+    if (label && label.parentElement) {
+      label.parentElement.removeChild(label)
+    }
+  }
+
+  function fileRenamed (oldName, newName, isFolder) {
+    fileRemoved(oldName)
+    fileAdded(newName)
+  }
+
+  // make interface and register to nodeClick, leafClick
   self.treeView = new Treeview({
     extractData: function extractData (value, tree, key) {
       var newValue = {}
@@ -93,20 +142,18 @@ function fileExplorer (appAPI, files) {
       return {
         path: (tree || {}).path ? tree.path + '/' + key : key,
         children: isFile ? undefined
-        : value instanceof Array ? value.map((item, index) => ({
-          key: index, value: item
-        })) : value instanceof Object ? Object.keys(value).map(subkey => ({
-          key: subkey, value: value[subkey]
-        })) : undefined
+          : value instanceof Array ? value.map((item, index) => ({
+            key: index, value: item
+          })) : value instanceof Object ? Object.keys(value).map(subkey => ({
+            key: subkey, value: value[subkey]
+          })) : undefined
       }
     },
     formatSelf: function formatSelf (key, data, li) {
-      var isRoot = data.path.indexOf('/') === -1
+      var isRoot = data.path === self.files.type
       return yo`<label class="${data.children ? css.folder : css.file}"
         data-path="${data.path}"
         style="${isRoot ? 'font-weight:bold;' : ''}"
-        onload=${function (el) { adaptEnvironment(el, focus, hover, li) }}
-        onunload=${function (el) { unadaptEnvironment(el, focus, hover, li) }}
         onclick=${editModeOn}
         onkeydown=${editModeOff}
         onblur=${editModeOff}
@@ -114,18 +161,30 @@ function fileExplorer (appAPI, files) {
     }
   })
 
+  self.treeView.event.register('leafClick', function (key, data, label) {
+    if (self.focusElement) {
+      self.focusElement.classList.remove(css.hasFocus)
+      self.focusElement = null
+      self.focusPath = null
+    }
+    self.focusElement = self.treeView.labelAt(key)
+    if (self.focusElement) {
+      self.focusElement.classList.add(css.hasFocus)
+      self.focusPath = key
+      self.events.trigger('focus', [key])
+      appAPI.config.set('currentFile', key)
+    }
+  })
+
   self.treeView.event.register('nodeClick', function (path, childrenContainer) {
     if (!childrenContainer) return
-    if (childrenContainer.style.display === 'none') {
-      childrenContainer.innerHTML = ''
-      return
-    }
+    if (childrenContainer.style.display === 'none') return
+
     files.resolveDirectory(path, (error, fileTree) => {
       if (error) console.error(error)
       if (!fileTree) return
       var newTree = normalize(path, fileTree)
-      var tree = self.treeView.renderProperties(newTree, false)
-      childrenContainer.appendChild(tree)
+      self.treeView.updateNodeFromJSON(path, newTree, true)
     })
   })
 
@@ -138,111 +197,22 @@ function fileExplorer (appAPI, files) {
     return newList
   }
 
-  var deleteButton = yo`
-    <span class=${css.remove} onclick=${deletePath}>
-      <i class="fa fa-trash" aria-hidden="true"></i>
-    </span>
-  `
-
+  // register to main app, trigger when the current file in the editor changed
   appAPI.event.register('currentFileChanged', (newFile, explorer) => {
-    if (explorer === files) {
-      fileFocus(newFile)
-    } else {
-      unfocus(focusElement)
+    if (self.focusElement && explorer.type !== files.type && self.focusPath !== newFile) {
+      self.focusElement.classList.remove(css.hasFocus)
+      self.focusElement = null
+      self.focusPath = null
     }
   })
-  fileEvents.register('fileRemoved', fileRemoved)
-  fileEvents.register('fileRenamed', fileRenamed)
-  fileEvents.register('fileRenamedError', fileRenamedError)
-  fileEvents.register('fileAdded', fileAdded)
 
-  var filepath = null
-  var focusElement = null
   var textUnderEdit = null
   var textInRename = false
 
-  self.events = new EventManager()
-  self.api = {}
-  self.api.addFile = function addFile (file) {
-    function loadFile () {
-      var fileReader = new FileReader()
-      fileReader.onload = function (event) {
-        if (helper.checkSpecialChars(file.name)) {
-          modalDialogCustom.alert('Special characters are not allowed')
-          return
-        }
-        var success = files.set(name, event.target.result)
-        if (!success) modalDialogCustom.alert('Failed to create file ' + name)
-        else self.events.trigger('focus', [name])
-      }
-      fileReader.readAsText(file)
-    }
-
-    var name = files.type + '/' + file.name
-    if (!files.exists(name)) {
-      loadFile()
-    } else {
-      modalDialogCustom.confirm(null, `The file ${name} already exists! Would you like to overwrite it?`, () => { loadFile() })
-    }
-  }
-
-  function focus (event) {
-    event.cancelBubble = true
-    var li = this
-    if (focusElement === li) return
-    unfocus(focusElement)
-    focusElement = li
-    focusElement.classList.toggle(css.hasFocus)
-    var label = getLabelFrom(li)
-    var filepath = label.dataset.path
-    var isFile = label.className.indexOf('file') === 0
-    if (isFile) self.events.trigger('focus', [filepath])
-  }
-
-  function unfocus (el) {
-    if (focusElement) focusElement.classList.toggle(css.hasFocus)
-    focusElement = null
-  }
-
-  function hover (event) {
-    var path = this.querySelector('label').dataset.path
-    if (path === self.files.type) return // can't delete the root node
-
-    if (event.type === 'mouseout') {
-      var exitedTo = event.toElement || event.relatedTarget
-      if (this.contains(exitedTo)) return
-      this.style.backgroundColor = ''
-      this.style.paddingRight = '19px'
-      return this.removeChild(deleteButton)
-    }
-    this.style.backgroundColor = styles.leftPanel.backgroundColor_FileExplorer
-    this.style.paddingRight = '0px'
-    this.appendChild(deleteButton)
-  }
-
-  function getElement (path) {
-    var label = self.element.querySelector(`label[data-path="${path}"]`)
-    if (label) return getLiFrom(label)
-  }
-
-  function deletePath (event) {
-    event.cancelBubble = true
-    var span = this
-    var li = span.parentElement.parentElement
-    var label = getLabelFrom(li)
-    var path = label.dataset.path
-    var isFolder = !!~label.className.indexOf('folder')
-    if (isFolder) path += '/'
-    modalDialogCustom.confirm(null, `Do you really want to delete "${path}" ?`, () => {
-      li.parentElement.removeChild(li)
-      removeSubtree(files, path, isFolder)
-    })
-  }
-
   function editModeOn (event) {
     if (self.files.readonly) return
     var label = this
-    var li = getLiFrom(label)
+    var li = label.parentElement.parentElement.parentElement
     var classes = li.className
     if (~classes.indexOf('hasFocus') && !label.getAttribute('contenteditable') && label.getAttribute('data-path') !== self.files.type) {
       textUnderEdit = label.innerText
@@ -273,185 +243,38 @@ function fileExplorer (appAPI, files) {
       }
     }
 
-    function cancelRename () {
-      label.innerText = textUnderEdit
-    }
-
     if (event.which === 13) event.preventDefault()
     if (!textInRename && (event.type === 'blur' || event.which === 27 || event.which === 13) && label.getAttribute('contenteditable')) {
       textInRename = true
       var isFolder = label.className.indexOf('folder') !== -1
       var save = textUnderEdit !== label.innerText
       if (save) {
-        modalDialogCustom.confirm(null, 'Do you want to rename?', () => { rename() }, () => { cancelRename() })
+        modalDialogCustom.confirm(null, 'Do you want to rename?', () => { rename() }, () => { label.innerText = textUnderEdit })
       }
       label.removeAttribute('contenteditable')
       label.classList.remove(css.rename)
       textInRename = false
     }
   }
-
-  function renameSubtree (label, dontcheck) {
-    var oldPath = label.dataset.path
-    var newPath = oldPath
-    newPath = newPath.split('/')
-    newPath[newPath.length - 1] = label.innerText
-    newPath = newPath.join('/')
-    if (!dontcheck) {
-      var allPaths = Object.keys(files.list())
-      for (var i = 0, len = allPaths.length, path, err; i < len; i++) {
-        path = allPaths[i]
-        if (files.isReadOnly(path)) {
-          err = 'path contains readonly elements'
-          break
-        } else if (path.indexOf(newPath) === 0) {
-          err = 'new path is conflicting with another existing path'
-          break
-        }
-      }
-    }
-    if (err) {
-      modalDialogCustom.alert(`could not rename - ${err}`)
-      label.innerText = textUnderEdit
-    } else {
-      textUnderEdit = label.innerText
-      updateAllLabels([getElement(oldPath)], oldPath, newPath)
-    }
-  }
-
-  function updateAllLabels (lis, oldPath, newPath) {
-    lis.forEach(function (li) {
-      var label = getLabelFrom(li)
-      var path = label.dataset.path
-      var newName = path.replace(oldPath, newPath)
-      label.dataset.path = newName
-      var ul = li.lastChild
-      if (ul.tagName === 'UL') {
-        updateAllLabels([...ul.children], oldPath, newPath)
-      }
-    })
-  }
-
-  function fileFocus (path) {
-    if (filepath === path) return
-    filepath = path
-    var el = getElement(filepath)
-    expandPathTo(el)
-    setTimeout(function focusNode () { el.click() }, 0)
-  }
-
-  function fileRemoved (filepath) {
-    // @TODO: only important if currently visible in TreeView
-    var li = getElement(filepath)
-    if (li) li.parentElement.removeChild(li)
-  }
-
-  function fileRenamed (oldName, newName, isFolder) {
-    // @TODO: only important if currently visible in TreeView
-    var li = getElement(oldName)
-    if (li) {
-      oldName = oldName.split('/')
-      newName = newName.split('/')
-      var index = oldName.reduce(function (idx, key, i) {
-        return oldName[i] !== newName[i] ? i : idx
-      }, undefined)
-      var newKey = newName[index]
-      var oldPath = oldName.slice(0, index + 1).join('/')
-      li = getElement(oldPath)
-      var label = getLabelFrom(li)
-      label.innerText = newKey
-      renameSubtree(label, true)
-    }
-  }
-
-  function fileRenamedError (error) {
-    modalDialogCustom.alert(error)
-  }
-
-  function fileAdded (filepath) {
-    // @TODO: only important if currently visible in TreeView
-    self.files.resolveDirectory('./', (error, files) => {
-      if (error) console.error(error)
-      var element = self.treeView.render(files)
-      element.className = css.fileexplorer
-      self.element.parentElement.replaceChild(element, self.element)
-      self.element = element
-    })
-  }
-}
-
-/*
-  HELPER FUNCTIONS
-*/
-function adaptEnvironment (label, focus, hover) {
-  var li = getLiFrom(label) // @TODO: maybe this gets refactored?
-  li.style.position = 'relative'
-  var span = li.firstChild
-  // add focus
-  li.addEventListener('click', focus)
-  // add hover
-  span.classList.add(css.activeMode)
-  span.addEventListener('mouseover', hover)
-  span.addEventListener('mouseout', hover)
-}
-
-function unadaptEnvironment (label, focus, hover) {
-  var li = getLiFrom(label) // @TODO: maybe this gets refactored?
-  var span = li.firstChild
-  li.style.position = undefined
-  // remove focus
-  li.removeEventListener('click', focus)
-  // remove hover
-  span.classList.remove(css.activeMode)
-  span.removeEventListener('mouseover', hover)
-  span.removeEventListener('mouseout', hover)
-}
-
-function getLiFrom (label) {
-  return label.parentElement.parentElement.parentElement
 }
 
-function getLabelFrom (li) {
-  return li.children[0].children[1].children[0]
-}
-
-function removeSubtree (files, path, isFolder) {
-  var parts = path.split('/')
-  var isFile = parts[parts.length - 1].length
-  var removePaths = isFile ? [path] : Object.keys(files.list()).filter(keep)
-  function keep (p) { return ~p.indexOf(path) }
-  removePaths.forEach(function (path) {
-    [...window.files.querySelectorAll('.file .name')].forEach(function (span) {
-      if (span.innerText === path) {
-        var li = span.parentElement
-        li.parentElement.removeChild(li) // delete tab
-      }
-    })
-    files.remove(path)
-  })
-  if (isFolder) files.remove(path)
-}
-
-function expandPathTo (li) {
-  while ((li = li.parentElement.parentElement) && li.tagName === 'LI') {
-    var caret = li.firstChild.firstChild
-    if (caret.classList.contains('fa-caret-right')) caret.click() // expand
-  }
+fileExplorer.prototype.init = function () {
+  this.container = yo`<div></div>`
+  return this.container
 }
 
-fileExplorer.prototype.init = function () {
+fileExplorer.prototype.ensureRoot = function (cb) {
   var self = this
+  if (self.element && cb) return cb()
+
   self.files.resolveDirectory('/', (error, files) => {
     if (error) console.error(error)
-    var element = self.treeView.render(files)
+    var element = self.treeView.render(files, false)
     element.className = css.fileexplorer
     element.events = self.events
     element.api = self.api
-    setTimeout(function () {
-      self.element.parentElement.replaceChild(element, self.element)
-      self.element = element
-    }, 0)
+    self.container.appendChild(element)
+    self.element = element
+    if (cb) cb()
   })
-  self.element = yo`<div></div>`
-  return self.element
 }
diff --git a/src/app/files/fileManager.js b/src/app/files/fileManager.js
index 9a5875b650..976bbda632 100644
--- a/src/app/files/fileManager.js
+++ b/src/app/files/fileManager.js
@@ -47,6 +47,7 @@ class FileManager {
         self.switchFile(Object.keys(self.tabbedFiles)[0])
       } else {
         opt.editor.displayEmptyReadOnlySession()
+        self.opt.config.set('currentFile', '')
       }
       return false
     })
@@ -98,7 +99,6 @@ class FileManager {
 
   // Display files that have already been selected
   refreshTabs (newfile) {
-    var self = this
     if (newfile) {
       this.tabbedFiles[newfile] = newfile
     }
@@ -109,29 +109,32 @@ class FileManager {
     for (var file in this.tabbedFiles) {
       $filesEl.append(yo`<li class="file"><span class="name">${file}</span><span class="remove"><i class="fa fa-close"></i></span></li>`)
     }
-    var currentFileOpen = !!this.opt.config.get('currentFile')
 
-    if (currentFileOpen) {
-      var active = $('#files .file').filter(function () { return $(this).find('.name').text() === self.opt.config.get('currentFile') })
-      active.addClass('active')
-    }
-    $('#input').toggle(currentFileOpen)
-    $('#output').toggle(currentFileOpen)
+    var active = $('#files .file').filter(function () {
+      return $(this).find('.name').text() === newfile
+    })
+    if (active.length) active.addClass('active')
+    else this.switchFile()
+    // $('#input').toggle(active)
+    $('#output').toggle(active)
   }
 
   switchFile (file) {
     var self = this
-    if (!file) {
-      self.opt.filesProviders['browser'].resolveDirectory('/', (error, filesTree) => {
+    if (file) return _switchFile(file)
+    else {
+      var browserProvider = self.opt.filesProviders['browser']
+      browserProvider.resolveDirectory('browser', (error, filesTree) => {
         if (error) console.error(error)
-        var fileList = Object.keys(flatten(filesTree))
+        var fileList = Object.keys(filesTree)
         if (fileList.length) {
-          file = fileList[0]
-          if (file) _switchFile(file)
+          _switchFile(browserProvider.type + '/' + fileList[0])
+        } else {
+          self.event.trigger('currentFileChanged', [])
         }
       })
-    } else _switchFile(file)
-    function _switchFile () {
+    }
+    function _switchFile (file) {
       self.saveCurrentFile()
       self.opt.config.set('currentFile', file)
       self.refreshTabs(file)
@@ -179,23 +182,3 @@ class FileManager {
 }
 
 module.exports = FileManager
-
-function flatten (tree) {
-  var flat = {}
-  var names = Object.keys(tree || {})
-  if (!names.length) return
-  else {
-    names.forEach(name => {
-      if ('/content' in tree[name]) flat[name] = false
-      else {
-        var subflat = flatten(tree[name])
-        if (!subflat) {
-          // empty folder
-        } else {
-          Object.keys(subflat).forEach(path => { flat[name + '/' + path] = false })
-        }
-      }
-    })
-    return flat
-  }
-}
diff --git a/src/app/files/shared-folder.js b/src/app/files/shared-folder.js
index 6b82ffa349..e76fd0d84f 100644
--- a/src/app/files/shared-folder.js
+++ b/src/app/files/shared-folder.js
@@ -137,19 +137,6 @@ module.exports = class SharedFolder {
     return true
   }
 
-  //
-  // Tree model for files
-  // {
-  //   'a': { }, // empty directory 'a'
-  //   'b': {
-  //     'c': {}, // empty directory 'b/c'
-  //     'd': { '/readonly': true, '/content': 'Hello World' } // files 'b/c/d'
-  //     'e': { '/readonly': false, '/path': 'b/c/d' } // symlink to 'b/c/d'
-  //     'f': { '/readonly': false, '/content': '<executable>', '/mode': 0755 }
-  //   }
-  // }
-  //
-
   removePrefix (path) {
     path = path.indexOf(this.type) === 0 ? path.replace(this.type, '') : path
     if (path[0] === '/') return path.substring(1)
@@ -160,7 +147,7 @@ module.exports = class SharedFolder {
     var self = this
     if (path[0] === '/') path = path.substring(1)
     if (!path) return callback(null, { [self.type]: { } })
-    path = self.removePrefix('' + (path || ''))
+    path = self.removePrefix(path)
     self.remixd.dir(path, callback)
   }
 }
diff --git a/src/app/panels/file-panel.js b/src/app/panels/file-panel.js
index 1547f66896..606c7607dc 100644
--- a/src/app/panels/file-panel.js
+++ b/src/app/panels/file-panel.js
@@ -1,3 +1,4 @@
+/* global FileReader */
 var async = require('async')
 var $ = require('jquery')
 var yo = require('yo-yo')
@@ -73,7 +74,7 @@ function filepanel (appAPI, filesProvider) {
           </div>
           <div class=${css.treeviews}>
             <div class=${css.treeview}>${fileExplorer.init()}</div>
-            <div class="filesystemexplorer ${css.treeview}"></div>
+            <div class="filesystemexplorer ${css.treeview}">${fileSystemExplorer.init()}</div>
             <div class="swarmexplorer ${css.treeview}">${swarmExplorer.init()}</div>
             <div class="githubexplorer ${css.treeview}">${githubExplorer.init()}</div>
             <div class="gistexplorer ${css.treeview}">${gistExplorer.init()}</div>
@@ -87,7 +88,7 @@ function filepanel (appAPI, filesProvider) {
   var event = new EventManager()
   self.event = event
   var element = template()
-
+  fileExplorer.ensureRoot()
   var containerFileSystem = element.querySelector('.filesystemexplorer')
   var websocketconn = element.querySelector('.websocketconn')
   filesProvider['localhost'].remixd.event.register('connecting', (event) => {
@@ -143,7 +144,30 @@ function filepanel (appAPI, filesProvider) {
     // the files module. Please ask the user here if they want to overwrite
     // a file and then just use `files.add`. The file explorer will
     // pick that up via the 'fileAdded' event from the files module.
-    ;[...this.files].forEach(fileExplorer.api.addFile)
+
+    ;[...this.files].forEach((file) => {
+      var files = fileExplorer.files
+      function loadFile () {
+        var fileReader = new FileReader()
+        fileReader.onload = function (event) {
+          if (helper.checkSpecialChars(file.name)) {
+            modalDialogCustom.alert('Special characters are not allowed')
+            return
+          }
+          var success = files.set(name, event.target.result)
+          if (!success) modalDialogCustom.alert('Failed to create file ' + name)
+          else self.events.trigger('focus', [name])
+        }
+        fileReader.readAsText(file)
+      }
+
+      var name = files.type + '/' + file.name
+      if (!files.exists(name)) {
+        loadFile()
+      } else {
+        modalDialogCustom.confirm(null, `The file ${name} already exists! Would you like to overwrite it?`, () => { loadFile() })
+      }
+    })
   }
 
   // ----------------- resizeable ui ---------------
@@ -200,7 +224,6 @@ function filepanel (appAPI, filesProvider) {
     * @param {String} txHash    - hash of the transaction
     */
   function connectToLocalhost () {
-    var container = document.querySelector('.filesystemexplorer')
     if (filesProvider['localhost'].isConnected()) {
       filesProvider['localhost'].close((error) => {
         if (error) console.log(error)
@@ -213,10 +236,7 @@ function filepanel (appAPI, filesProvider) {
               if (error) {
                 console.log(error)
               } else {
-                if (fileSystemExplorer.element && container.children.length > 0) {
-                  container.removeChild(fileSystemExplorer.element)
-                }
-                container.appendChild(fileSystemExplorer.init())
+                fileSystemExplorer.ensureRoot()
               }
             })
           }})
diff --git a/src/app/panels/styles/file-panel-styles.js b/src/app/panels/styles/file-panel-styles.js
index 6bd243422e..857985c891 100644
--- a/src/app/panels/styles/file-panel-styles.js
+++ b/src/app/panels/styles/file-panel-styles.js
@@ -77,7 +77,7 @@ var css = csjs`
   }
   .dragbar            {
     position          : absolute;
-    top               : 37px;
+    top               : 29px;
     width             : 0.5em;
     right             : 0;
     bottom            : 0;